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Union Jack Oil Plc

Description of business:
Union Jack Oil was incorporated on 18 January 2011 and was admitted to the ISDX Growth Market on 20 December 2012.
The board of the company considers that the UK, with its stable economy, well regulated hydrocarbon market and established licensing system is an attractive country for direct investment in hydrocarbon projects, both onshore and offshore. The board's strategy is to:
? build a conventional production and exploration company, primarily onshore UK;
? develop a portfolio of drill-ready exploration assets which provide significant potential upside;
? maintain a low cost base with a focus on shareholder value; and
? consider, where appropriate, offshore ventures in the North Sea and Ireland.
Union Jack Oil currently has interests in four licences in the United Kingdom: PEDL253, PEDL201, PEDL241 and PEDL180 and has entered into agreements to allow the Company to participate in a further four licences, being PL090, PEDL068, PEDL005R and PEDL237. It is not currently the board's intention to exercise its rights under these agreements in respect of these licences.
PEDL201 - Burton on the Wolds
On 18 February 2013 Union Jack Oil entered into an agreement with Egdon Resources U.K. Limited ("Egdon Resources"), a wholly owned subsidiary of Egdon Resources plc ("Egdon"), and with privately controlled Celtique Energie Petroleum Ltd ("Celtique Energie") to acquire a 10 per cent. interest in UK onshore PEDL201. Under the terms of the farm-in agreement, Union Jack Oil is obliged to meet a total of 20 per cent. of the cost of the planned Burton on the Wolds-1 well to earn a 5 per cent. interest from each of Egdon Resources and Celtique Energie and will have a continuing obligation to pay 10 per cent. of the day-to-day operating costs (pro rata to its holding in PEDL201).
PEDL180 - Wressle
On 7 May 2013, Union Jack Oil entered into an agreement with Egdon Resources to acquire an 8.33 per cent. interest in UK onshore PEDL180. Under the terms of the agreement Union Jack Oil will pay 16.66 per cent. of the cost of the planned Wressle-1 exploration well to earn an 8.33 per cent. interest from Egdon Resources, as well as its continuing obligation to pay the 8.33 per cent. of the day-to-day operating costs.
In the event that the first well on PEDL180 discovers petroleum and that the discovery is developed as part of a field designated by the Secretary of State as extending into PEDL182, then within 30 days of such designation the Company shall have the option to require Egdon Resources to assign an 8.33 per cent. interest in the part of the designated field falling within PEDL182, such assignment to be on the same terms as the acquisition of the Company's interest in PEDL180 (other than in relation to the payment of costs of the first well).
PEDL253 - Biscathorpe
On 4 March 2013, Union Jack Oil entered into an agreement with Egdon Resources and privately controlled Montrose Industries Limited ("Montrose") to acquire a combined 10 per cent. interest in UK onshore PEDL253. Under the terms of the farm-in agreement, Union Jack Oil will pay 12 per cent. and 8 per cent. of the cost of the planned Biscathorpe-2 well to earn 6 per cent. and 4 per cent. interests from Egdon Resources and Montrose respectively, and will have a continuing obligation to pay 10 per cent. of the day-to-day operating costs (pro rata to its holding in PEDL253).
PEDL241 - North Kelsey
On 4 March 2013, Union Jack Oil entered into an agreement with Egdon Resources to acquire a 10 per cent. interest in UK onshore PEDL241. Under the terms of the agreement Union Jack Oil will pay 20 per cent. of the cost of the planned North Kelsey well to earn a 10 per cent. interest from Egdon Resources, and will have a continuing obligation to pay 10 per cent. of the day-to-day operating costs (pro rata to its holding in PEDL241).
In July 2013, the Company entered into agreements giving it the option to withdraw from its commitments arising from its interests in PEDL253 and PEDL241 for a fee of ?5,000 for each licence interest. On exercise of the option/s the Company's interest in the licence/s would be terminated.